Andhra Pradesh Secures $7.9 Billion Data Center Investments From Google, Sify

Andhra Pradesh has secured two major data center deals with tech giant Google and Indian ICT firm Sify, securing a combined investment of $7.9 billion and adding 1.55 gigawatts (GW) to the state’s data infrastructure capacity.

Google will invest $6 billion to set up a 1 GW data center in Visakhapatnam, with $2 billion of that earmarked for renewable energy development. The project is expected to be the largest of its kind in Asia in terms of both scale and capital outlay.

In a parallel move, the state cabinet has approved a $1.9 billion investment by Sify for a 550 MW data center facility.

These developments follow the rollout of the state’s IT & Global Capability Centers (GCC) Policy 4.0 (2024–2029), which offers incentives such as capital subsidies, rental support, and customized packages for large-scale tech projects.

State IT Minister Nara Lokesh said Andhra Pradesh has already secured 1.6 GW in data center commitments and aims to scale up to 6 GW over the next five years. Plans are also underway to establish three new undersea cable landing stations in Visakhapatnam, potentially positioning the city as a key digital gateway for India and Southeast Asia.

A notable feature of the Google project is its emphasis on sustainability, with a significant portion of the required power expected to come from green energy sources. The state aims to generate 10 GW of power—mostly renewable—over the next five years to support such infrastructure.

The data centers are also expected to generate substantial employment across technology, operations, and support services. The state’s skill development initiatives, including the “Future Skills Credit Scheme,” are being aligned to meet the workforce demands of these projects.